A person invests 3500 dollars in a bank. The bank pays 6.25% interest compounded annually. To the nearest tenth of a year, how long must the person leave the money in the bank until it reaches 8700 dollars?

Solution

Solution

Time : 15.02

Solution steps

Translate the problem into an equation:

8700 = 3500 (1 + \frac{0.0625}{1})^{1 \cdot t}

Solve for

t, 8700 = 3500 (1 + \frac{0.0625}{1})^{1 \cdot t} : t = 15.02

Time : 15.02

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